Starting a SaaS business in the United States can be difficult as a foreign-based business owner. However, it is not impossible! We will discuss the steps that you need to take to get your business up and running in this article. So, if you are just setting up or you have been struggling with your U.S.-based SaaS business, this article is for you!
What Is a SaaS Business?
SaaS businesses are companies that provide software as a service. In other words, these businesses sell access to software that is hosted on the internet, rather than selling the software itself. SaaS businesses have become increasingly popular in recent years, as more and more companies move away from traditional licensing models and towards subscription-based models.
Why Should You Start SaaS Business in The U.S.?
SaaS, or software as a service, businesses are growing in popularity due to a number of factors. For one, the recurring revenue model is appealing to investors. Additionally, customers are more likely to be loyal to a SaaS company since they are invested in the product and constantly receive updates and new features.
Starting a SaaS business in the United States also gives you access to the largest economy in the world. With a state of over 327 million people, there is a huge potential customer base. The US also has a large pool of talented engineers and developers that you can tap into building your product. Overall, starting a SaaS business in the United States is a smart choice because of the large market potential and access to top talent.
What Are the Legal Requirements?
To start a SaaS business in the U. S as a foreign-based business owner, you need to build a legal presence in the country. This can be done by setting up a physical office or by registering your company as a foreign entity with the relevant state authorities. You’ll need to choose a state in which to incorporating your business.
Once you have completed this, you will need to obtain a tax identification number and open a bank account in the United States. You’ll also need to ensure that your website and marketing materials are compliant with US advertising laws.
In addition, you will need to comply with any visa requirements that may apply to your situation. If you are aiming to hire employees, you will also need to obtain the appropriate work visas. By taking care of all of these legal requirements, you can ensure that your SaaS business is operating legally in the United States.
Here’s what you’ll require to open a bank account for your SaaS business in the US:
- A valid passport: You’ll need to provide your bank with a copy of your passport, as well as any other relevant ID documents.
- A US address: In order to open a bank account, you’ll need to have a US mailing address. This can be either a physical address or a PO Box.
- A Social Security Number (SSN): You’ll need to provide your SSN in order to open a bank account. If you don’t have an SSN, you can apply for an Individual Taxpayer Identification Number (ITIN).
- Incorporation documents: If your SaaS business is incorporated in the US, you’ll need to provide your bank with copies of your incorporation documents. These should include your articles of incorporation and your company’s EIN.
Some Companies That Can Manage Your Documentations in The Process
There are many driving parts and a lot of documentations that needs to be managed on the ground in order to get everything up and running smoothly. Thankfully, there are companies out there that can help with that. They specialize in helping foreign-based business owners get their businesses off the ground in the U.S. by taking care of all the documentations and management on the ground.
That way, you can focus on what you do best and leave the rest to them. So if you’re looking to start a SaaS business in the U.S. as a foreign-based business owner, don’t hesitate to reach out to one of these companies for help.
1. Adobe
One of the most well-recognized companies in the world, Adobe has more than 50 SaaS products to its credit. Several businesses use adobe products and services in a variety of sectors, including marketing, printing, publishing, and digital media.
2. Auth0
An easy way to include authentication and permission into apps is with Auth0. Teams and businesses can avoid the risk, expense, and time associated with implementing their own authorization and authentication systems.
3. Boastcapital
A B2B SaaS automation tool called Boastcapital calculates the research and development (R&D) tax for companies. The Boastcapital algorithm monitors and controls the companies’ spending on R&D initiatives once they satisfy their requirements. The SaaS solutions from Boastcapital lead to greater R&D claim recovery and decreased audit risk.
4. Concur
Businesses may more easily plan, organize, and manage travel-related expenses thanks to Concur, a company that specializes in travel and financial management. In order to develop a fully tailored package, their platform also enables clients to combine Concur’s capabilities with those of other applications.
Minimum Investment Required to Start a SaaS Business in the U.S
No one can give you an explicit number for the minimum price to start a SaaS business in the United States as a foreign-based business owner. However, there are some general tips that may help you get an idea of what you need to budget for.
- Keep in mind that the costs of running a SaaS business can vary significantly depending on the size and scope of your operation. If you plan to offer your software services to a niche market, you may be able to get by with a lower initial investment than if you were targeting a larger audience.
- Remember that you will need to pay for licenses and permits in order to operate your business legally in the United States. The cost of these can vary depending on the state in which you plan to do business.
- Be specific to factor in the cost of marketing and advertising your SaaS business. While it is possible to run a successful operation on a shoestring budget, you will probably need to spend some capital in order to get the word out about your services.
By keeping these factors in mind, you should be able to get a better idea of the minimum price you’ll need to start your SaaS business in the United States.